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The following data is given for the Stringer Company: Budgeted production 934 units Actual production 1,091 units Materials: Standard price per ounce $1.82 Standard ounces
The following data is given for the Stringer Company:
Budgeted production | 934 units |
Actual production | 1,091 units |
Materials: | |
Standard price per ounce | $1.82 |
Standard ounces per completed unit | 11 |
Actual ounces purchased and used in production | 12,361 |
Actual price paid for materials | $25,340 |
Labor: | |
Standard hourly labor rate | $14.43 per hour |
Standard hours allowed per completed unit | 4.5 |
Actual labor hours worked | 5,618.65 |
Actual total labor costs | $85,684 |
Overhead: | |
Actual and budgeted fixed overhead | $1,177,000 |
Standard variable overhead rate | $27.00 per standard labor hour |
Actual variable overhead costs | $157,322 |
Overhead is applied on standard labor hours. |
The direct materials quantity variance is
a.2,842.98 favorable
b.2,842.98 unfavorable
c.655.20 unfavorable
d.655.20 favorable
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